A Case for Globalism

Kelly, Jim, Global Finance

Globalism's growth potential comes at a high price. It requires an immense ongoing investment in infrastructure and technology. The language and cultural barriers are considerable and the logistics nightmarish. We speak from experience:

In just the last two decades UPS has gone from a domestic-only express delivery company to serving more than 200 countries and territories. Our technology infrastructure links more than 500,000 users worldwide every day.

In some ways, we had no choice but to go global as we followed our customers across an increasing number of borders. Businesses in every corner of the world need their goods brought to market quickly and efficiently. Companies that have the resources to do it right and wish to reach their full potential are duty-bound to serve those businesses. After all, serving the customer should be the most important motive behind any business decision, global or otherwise.

UPS's strategy involves a customized, long-term commitment demonstrated by establishing a global infrastructure, investing in the world's regions, establishing partnerships with local markets, and sharing "best practices." For example, we've established Asian joint ventures in China with Sinotrans Pekair, in Japan with Yamato, in South Korea with Korea Express, and in the Philippines with Delbros.

Companies spend billions of dollars every year to establish and update facilities in markets new to them. In 1995, for example, UPS Europe rolled out a $1.1 billion, five-year investment strategy in new technology, aircraft, vehicles, and infrastructure. Last year we opened a new international air hub in Taipei, the cornerstone of a $400 million Asia/Pacific investment strategy. Over the past two years we signed a new cooperative agreement in Latin America that creates a seamless link between the air networks of UPS and Challenge Air Cargo. …

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